although the other side of the coin is your money is spread over many different loans.One investor one property has been the back bone of my business model in the notes and HML that I have done the last 20 years.Prior to that when I had a large HML company in Oakland CA all of our loans were fractionalized Deeds of trust.. the loans even in the mid 80's when I was going strong were already at 350 to 500k per and it was very difficult to find one investor that had that much money or wanted to put that much into one deal.But yes your point is quite valid.

The less interest you pay, the more equity you have.Also, more of a down payment will reflect favorably in your interest rate (and you pay less interest.Also, we always evaluate paying a fraction of a point to see if the interest savings are worth it.

With TIC interest, you are buying just that, a fractional interest, NOT the apartment unit.

if its legal to fractionalize in your state or jurisdiction and its just a few of you that are known to each other you could simply do fractional assignments of the beneficial interests.. this is one doc and pretty easy.Just make sure you have a dispute doc sign by all when the note goes bad...

I am an electrical Contractor as well as an investor and I have the ability to get that done at a fraction of those costs.

I like hard money lending because you can take smaller amounts and be part investor in the note (fractionalize).

Our visitors would say how "neat" and "cute"/ "quaint" the community was and really liked the space as the whole tiny houses concept is hot these days.So, we reached out to a local college business school and recruited some students to do a market study for us and found that we just might be able to make the tiny space concept work on this property.Instead of spending a lot of dollars to sweep the property and build it from scratch (never-mind finagling the financing for such an undertaking), we were able to spend a fraction of the cost to renovate these units with a great response and a good return.In addition to learning that the tiny home concept may work for many demographics, we also found that the 55 and older community may be very receptive to these types of units.

@Andrew McIntyre Kim is totally on point; most PM's will discount their leasing fee slightly when the owner finds the tenant but remember finding the person is just a fraction of the work involved.

Although I only know a fraction of what the vets on the site know the experienced investors always seem to want to encourage young investors like myself rather than talking down to them. 

REO's are only a small fraction of what they once were.